Your Right to Know

A bill that effectively would shut down Internet cafes in Ohio passed a House committee
yesterday and is likely headed for a full House vote this afternoon.

House Bill 7, a bill supported by most law-enforcement groups and Attorney General Mike DeWine,
would limit prize payouts at the businesses, also known as sweepstakes parlors, to $10. It passed
in the committee 10-2.

The nearly 800 largely unregulated gambling operations across the state sell Internet time or
phone cards, which come with points that customers can play at terminals that are like slot
machines.

Internet cafe owners argue they are offering a safe, clean form of entertainment that is a
sweepstakes game similar to those offered by other mainstream retailers.

Bill supporters argued that the businesses are running questionable gambling operations not
authorized by the state or voters, which have the potential to support a host of criminal
activity.

“Internet cafes are deceiving, contribute to increased gambling addictions, and are predatory in
nature,” Lisa Hamler-Fugitt, executive director of the Ohio Association of Food Banks, wrote in a
letter to legislators this week. They “are redirecting funds away from legitimate sources, such as
charitable bingo, ... that provide critical support for faith-based and charity emergency
food-assistance organizations.”

Before passage, the committee made a few tweaks to the bill, such as making the penalty for
illegal gambling a first-degree misdemeanor, rather than a felony.

If it passes the House, the bill would move to the Senate, where a similar bill ran into
opposition late last session.

Internet-cafe supporters have argued for state regulation, rather than a bill that effectively
kills them.

“This legislation would allow Internet cafes to remain open but would provide for necessary
regulations to keep undesirable elements out of this industry,” Maag said. “I believe this is
preferable to outlawing them, as they employ many people across the state.”